Mutual Funds Unit Investment Trusts Retirement Planning Estate Planning Other
Unit Investment Trusts What are Unit Investment Trusts?A Unit Investment Trust invests in a fixed portfolio, typically for a predetermined period of time. Rather than selecting from individual stocks and bonds, Unit Investment Trust Portfolios allow individuals to invest in a basket of securities with a single purchase. Each portfolio is strategically designed to handle a specific set of investment objectives and needs, keeping in mind risk, income requirements, diversification and liquidity. Types of Unit Investment Trusts
Fixed Income Unit Investment Trusts: A single category of bond is typically found in many fixed-income UITs. These may be corporate bonds, state municipal bonds, national municipal bonds, international bonds, or mortgage-backed and government securities. Investors in UITs can usually receive interest monthly, quarterly or semi-annually. Equity Unit Investment Trusts: These are baskets of strategically selected stocks or funds that generally invest for their potential to provide total returns through income and growth. Why a Buy and Hold Philosophy?
Unit Investment Trusts enable the individual investor to implement a disciplined approach to investing. UITs are professionally constructed, well positioned portfolios, which are designed to be held over a fixed period of time. At Hennion & Walsh we believe timing the market does not produce the best returns. Instead we offer investment opportunities that rely on a disciplined investment strategy. Liquidity: We recognize that objectives change sometimes and UIT Portfolios can usually be liquidated on a daily basis at the redemption price, which may be more or less than your original purchase price. Features of UIT Portfolios
Defined Portfolios - The investments that are held in UIT portfolios are never actively managed. Defined Time Frame - UITs have a termination date. Diversification - Because UIT portfolios can be diversified across many different investments they help implement an investing strategy that can be neatly summed up as "Don't put all your eggs in one basket." Spreading your investments across a wide range of companies and industry sectors can help lower your risk if a company or sector fails. Some investors find it easier to achieve diversification through ownership of mutual funds rather than through ownership of individual stocks or bonds. Liquidity - UITs can usually be redeemed on any business day at the market redemption price, which may be more or less than the original investment. Ease of Holding - UITs allow investors to quickly own diversified, professionally managed portfolios that match their investment strategy. To find out how UITs can play a strategic role in your portfolio, contact our investment professionals today at (800)836-8240 or click here to see a list of our available SmartTrust portfolios. Professional Portfolio ConstructionUIT management teams are typically experienced, knowledgeable professionals who know and understand how to research and select (or assist in the selection of) appropriate securities for each portfolio. Once the portfolio is selected and deposited, the holdings of the portfolio are monitored by the same research team. UIT Tax AdvantagesSince UITs are not actively traded and since stated maturities are longer than 12 months, equity unit trust portfolios allow investors holding their units longer than 12 months to receive the more favorable long-term capital gains rate at maturity. In addition, UITs do not incur any capital gains or losses during the holding period of a unit. Diversification
Unit Investment Trusts can be diversified across may different securities and asset classes providing for a portfolio for almost every asset allocation need. Low Expenses
Unit Investment Trusts have historically featured lower expenses compared with other investment bundled products, such as Mutual Funds. Daily Liquidity
Units can usually be redeemed on any business day at the redemption market price. SmartTrustTo see the list of available SmartTrust portfolios, please click here.
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